Well sometimes large companies like Canon can be their own worst enemy, far worse than any kind of competition they have.

The thing is that a lot of people who buy cameras like this aren't necessarily hardcore users who have a real application in mind. They are doing it just as much to impress their friends or just have something to spend their money on. The cheaper your product gets, the more it starts to appeal to this lower end of the market where the 'look' and styling can make or break a sale.